The federal government is expected to call for submissions on the investigation over the coming weeks, which will examine the scope of Commonwealth and state expenditure on natural disasters.

Councillor Rod Kendall says following the floods that affected wide parts of the Riverina in 2010 and 2012, there was a firm focus on funding after the disasters.

"I certainly believe that mitigation of disaster, and funding for mitigation measures has not been up to the task in the past," he said.

"We've seen for example, where levee banks have taken 20 years to be completed around townships.

"There have been a lot of initiative identified post disasters.

"Looking at mitigation and resilience I think is a very, very important part."

There is hope the Productivity Commission inquiry will see the method in which local government areas are declared natural disaster zones simplified.

I certainly believe that mitigation of disaster, and funding for mitigation measures has not been up to the task in the past. We've seen for example, where levee banks have taken 20 years to be completed around townships. Looking at mitigation and resilience I think is a very, very important part.

Wagga Wagga Mayor, Rod Kendall

Councillor Kendall says in recent floods and bushfires around the region, areas local residents thought should be disaster declared were not.

"It would be terrific if the three levels of government can come together, decide on the arrangements and who signs off, rather than a series of people who sign off on it," he said.

"That would make a lot of sense.

"We'll see what the inquiry says about it.

"It's extremely important those measures are simplified."

Councillor Kendall has also raised questions over the validity of personal hardship payments after natural disasters.

The Wagga Wagga Mayor says thousands of Wagga residents were eligible for disaster payments after the CBD's evacuation in March 2012 due to flooding and believes it is an initiative investigated further.

"Whether or not that was the best spend of the money, or whether or not that money could've gone into mitigation measures for future recovery, we would like, I think, those types of measures looked at as well as part of this inquiry," he said.

"The way I see it, they will be looked at."

The Productivity Commission is expected to deliver its draft report by September.